Correlation Between Schneider National and Air T
Can any of the company-specific risk be diversified away by investing in both Schneider National and Air T at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Schneider National and Air T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schneider National and Air T Inc, you can compare the effects of market volatilities on Schneider National and Air T and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Schneider National with a short position of Air T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schneider National and Air T.
Diversification Opportunities for Schneider National and Air T
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Schneider and Air is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Schneider National and Air T Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air T Inc and Schneider National is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Schneider National are associated (or correlated) with Air T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air T Inc has no effect on the direction of Schneider National i.e., Schneider National and Air T go up and down completely randomly.
Pair Corralation between Schneider National and Air T
Given the investment horizon of 90 days Schneider National is expected to generate 1.41 times less return on investment than Air T. But when comparing it to its historical volatility, Schneider National is 4.38 times less risky than Air T. It trades about 0.38 of its potential returns per unit of risk. Air T Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,605 in Air T Inc on August 24, 2024 and sell it today you would earn a total of 227.00 from holding Air T Inc or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schneider National vs. Air T Inc
Performance |
| Timeline |
| Schneider National |
| Air T Inc |
Schneider National and Air T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schneider National and Air T
The main advantage of trading using opposite Schneider National and Air T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schneider National position performs unexpectedly, Air T can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Air T will offset losses from the drop in Air T's long position.| Schneider National vs. Small Cap Core | Schneider National vs. Morningstar Unconstrained Allocation | Schneider National vs. Mutual Of America | Schneider National vs. Ep Emerging Markets |
| Air T vs. Addentax Group Corp | Air T vs. Hub Group | Air T vs. Landstar System | Air T vs. JB Hunt Transport |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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